The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides and overview of the payments on account regime.
As a result of the coronavirus (COVID-19) pandemic, businesses were able to delay certain VAT payment, see the Coronavirus (COVID-19) and VAT - delaying payments guidance note for more details.
VAT registered businesses that have an annual VAT liability of more than £2.3m are required to make payments on account (POA).
Businesses that are required to make POA make interim payments at the end of months two and three for each VAT return quarter. The interim payment is intended to cover part of the overall VAT liability for the VAT return quarter. The balancing payment for that quarters' VAT liability will be settled when the business submits its VAT return payment.
POA must be made electronically and the cleared funds must be in HMRC's account by close of business on the due date (or on the last working day if that is earlier).
It should be noted that under VATA 1994, s 83 businesses have no right of appeal against being included within the POA regime. However, businesses who come within the scope of the POA scheme can use the alternatives suggested below rather than make POA.
UK VAT registered businesses need to make POA if:
they submit quarterly VAT returns
in any period of 12 months or less the business' total VAT liability was at least £2.3m
When determining whether the threshold has been exceeded HMRC will include the following amounts:
all VAT declared, or that should have been declared, on returns, including assessments raised by HMRC and voluntary disclosures
VAT on imports and ex-warehouse goods
VPOA1200; VPOA2100; VPOA2200
SI 1993/2001, Articles 5, 6
Some businesses may be required to enter the regime as a result of HMRC assessments that may be appealed. Until the appeal has been resolved, these amounts will be included in the POA calculation. If the appeal is successful and the income
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.